The first Closing process is contract closeout. Contract closeout is a process that consists of the following activities:
It is helpful to have a solid understanding of these four items; however, at a minimum, make certain for the exam that you know they are a part of contract closeout, which is a step in the Project Closing process.
Product verification must be completed to ensure that all work was done according to the specifications in the contract.
Administrative closeout includes the updating and finalization of records. For exam purposes, it is also important to remember that contract payment and lessons learned are a part of administrative closure.
A procurement audit is a review of all steps in the procurement process to determine its successes and failures.
Formal acceptance should be provided to the seller, in writing, by the person responsible for contract administration.
Similarities Between Contract Closeout and Administrative Closure
It's important to remember that contract closeout and administrative closure are two separate process steps in the Project Closing process. This can be confusing, because as was described in the previous section, the activity of administrative closeout is part of contract closeout. However, the process of administrative closure involves the entire project, not just the contract. Plus, it should be executed at the end of each project phase.
Contract Documentation That Should be Reviewed During Contract Closeout
Contract documentation is listed in the PMBOK in Section 18.104.22.168, and it should be reviewed during contract closeout. It is important that you review the items on this list; the exam may try to trick you with a document that sounds similar to these but is not truly considered a part of contract documentation. Items deemed to be contract documentation by PMI include the following: